A non-profit healthcare service provider, Asian American for Community Involvement (AACI), is considering the potential benefits from the available strategic option of expansion to a satellite site on the east side of the U.S. tenth largest city, San Jose, California. AACI mainly provides its services to low-income immigrants in the city. AACI’s management is contemplating that whether they should pursue this strategic approach while one of the expansion project at its central city location is ongoing. During the last ten years, the population of immigrants in San Jose has raised by an increasing rate and now the city possesses 32% by Asians. In the near future, the patient case is expected to increase because of the increasing rate of immigrants, including Asian and Latino, and because of the introduction of a new policy on Affordable Care Act. Now the management has to devise a strategy that could fulfill this increasing demand of healthcare services. The case evaluates the financial capacity of ACCI for incorporating this expansion plan and how ACCI should measure this strategic choice against other financial needs that included the current maintenance cost of the office building that it possesses, operates as well as rents the half portion to another occupant.
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